When Bitcoin was first created in 2009, to most people, the idea of open-source, decentralized cryptocurrency probably sounded like something from a futuristic action movie. Today, there are not just are many different types of cryptocurrencies but multiple ways to hold crypto as an asset and it is increasingly common to have crypto as a part of one’s investment portfolio. In terms of estate planning, it is easiest if you hold cryptocurrency in a coin-based account. Many people have Bitcoin, Ethereum, or Dogecoin in the form of a CryptoKey. This makes it harder because the asset doesn’t ‘live’ anywhere in the same way assets in a coin based account or in a more traditional financial portfolio do. The benefit of a coin-based account is that it enables you to name a pay on death beneficiary, much like banks and other financial institutions. To make sure our clients’ assets are protected, however they hold their crypto, we have added additional language to the General Assignment portion of our estate plan package to ensure that they will be treated as an asset of their living trust.
The language is as follows:
It is my intent that all of my assets, whether real property, financial accounts, stocks, business interests, or otherwise, that I own now or in the future, be an asset of my living trust…. I hereby transfer to the Trustee of my living trust, the following assets…any and all cryptocurrency investments, crypto-coins, tokens, any other form of digital cash, and anything found in or on my cryptocurrency wallets, digitally, on paper, or through online exchanges.
Innovation creates changes in our economy and how individuals and families hold their wealth. At Britton Law Group, I make sure that no matter how markets, or financial systems change, our client’s assets and legacies are protected.
The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute an attorney-client relationship. Brittany Britton is licensed to practice law in the state of California only.